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Acknowledging that a combination of unexpected generator outagesand sustained hot weather could create the threat of power outagesthis summer, the California Independent System Operator (Cal-ISO)launched a new alert system for gaining enough voluntaryconservation by businesses and mass consumers to ride out thepeak-demand periods. Calling it “Power Watch 2000,” Cal-ISOPresident/CEO Terry Winter said he anticipates that both short- andlong-term the state can use market-based programs to addresspotential shortfalls.

Dynegy and Illinova completed their merger to create a newcompany, called Dynegy, with market capitalization of more than $10billion. The company has interests in power plants with more than14,000 MW of domestic generating capacity, average worldwide gassales of more than 10 Bcf/d and more than 1.4 million retailcustomers. The combined company has more than $12 billion in assetsand $22 billion in projected annual revenues from energy operationsthroughout North America and Europe.

Plans for a new publicly-traded energy giant were revealed last week, as Duke Energy and Phillips Petroleum announced their intentions to form a midstream company called Duke Energy Field Services (DEFS). Expected to have an enterprise value of between $5 and $6 billion, DEFS will result from a merger of Duke’s gathering and processing businesses (also called Duke Energy Field Services) with Phillips’ Gas Processing and Marketing (GPM) unit. Subject to approval by the FTC under the Hart-Scott-Rodino act, the deal is expected to close by the first quarter 2000.

Plans for a new publicly traded energy giant were revealedyesterday, as Duke Energy and Phillips Petroleum announced theirintentions to form a midstream company called Duke Energy FieldServices (DEFS). Expected to have an enterprise value of between $5and $6 billion, DEFS will be the result of a merger of Duke’sgathering and processing businesses (also called Duke Energy FieldServices) with Phillip’s Gas Processing and Marketing (GPM) unit.Subject to approval by the FTC under the Hart-Scott-Rodino act, thedeal is expected to close by the first quarter 2000.

Koch Gateway Pipeline’s proposal to create an interactiveauction for shippers to bid on capacity in expiring firm storagecontracts has come up against some protest at the Federal EnergyRegulatory Commission.

A very divided FERC last week proposed a rulemaking that seeksto create a uniform, complaint-driven system for regulating nearlyall offshore gas pipelines based on its authority under thelighter-handed Outer Continental Shelf Lands Act (OCSLA).

Dominion Resources Inc. and Consolidated Natural Gas Co.shareholders approved the merger of the companies to create thelargest fully integrated gas and electric company in the U.S.

The upcoming Texas legislative session will see another attemptto merge the Texas Public Utility Commission and the Texas RailroadCommission to create a single agency regulating natural gas,electricity, oil production, as well as telecommunicationsutilities.

The $4 billion stock merger of Kerr-McGee and Oryx Energyannounced yesterday will create the fourth largest independentproducer in the United States with about one billion equivalentbarrels of proved reserves. The move comes in an environment offoundering commodity prices and widespread industry layoffs andfollows the announcement of aggressive cost-cutting moves by Oryx.